Techniques for conducting transactions utilizing cryptocurrency

ABSTRACT

Embodiments of the invention are directed to systems and methods for conducting a transaction utilizing a cryptocurrency. The user may fund a cryptocurrency account with his pre-existing cryptocurrency. An issuer may purchase cryptocurrency within a cryptocurrency exchange. The user may then utilize a payment device (e.g., a Crypto Debit Card) that is associated with a cryptocurrency balance to conduct a transaction with a merchant for goods and/or services. An authorization request message may be transmitted to the authorizing entity computer. The authorizing entity computer may determine a cryptocurrency amount corresponding to the fiat currency transaction amount of the authorization request message. A sell request message may be transmitted to an exchange that facilitates the sale of the cryptocurrency amount. If the sale is successful, the authorizing entity computer may transmit an authorization response message indicating that the transaction is approved and the merchant may release the purchased goods and/or services.

BACKGROUND

A transaction to transfer cryptocurrency between two parties may utilizea cryptocurrency network of computers that jointly manage an electronicledger of transactions. The process for confirming the transactionwithin the cryptocurrency network may take a substantial time tocomplete. Accordingly, it is impractical to utilize a cryptocurrencynetwork to perform transactions that require confirmation in arelatively short period of time. Additionally, both parties to thetransaction are required to have an account within the cryptocurrencynetwork before a transfer may occur. Thus, conventional systems may beimproved with respect to latency and accessibility.

Embodiments of the invention address these and other problemsindividually and collectively.

SUMMARY

One embodiment of the invention is directed to a method. The methodcomprising receiving, by an authorizing entity computer, anauthorization request message associated with a transaction having afiat currency amount. The method further comprising determining, by theauthorizing entity computer, that the authorization request messageindicates utilization of a cryptocurrency wallet account. The methodfurther comprising obtaining, by the authorizing entity computer, anexchange rate associated with a cryptocurrency corresponding to thecryptocurrency wallet account. The method further comprisingtransmitting, by the authorizing entity computer, a sell request messagethat indicates a sell request for a cryptocurrency amount based at leastin part on the fiat currency amount and the exchange rate associatedwith the cryptocurrency. The method further comprising receiving, by theauthorizing entity computer, a sell response message indicating that thesell request was successful. The method further comprising transmitting,by the authorizing entity computer, an authorization response messageassociated with the authorization request message, the authorizationresponse message indicating that the transaction is authorized.

Another embodiment of the invention is directed to an authorizing entitycomputer comprising a processor and a computer readable medium. Thecomputer readable medium comprising code, executable by the processor,for implementing the above-described method.

Another embodiment of the invention is directed to a method. The methodcomprising receiving, by a processing network computer, an authorizationrequest message associated with a transaction having a fiat currencyamount. The method further comprising transmitting, by the processingnetwork computer, the authorization request message to an authorizingentity computer. The method further comprising obtaining, by theprocessing network computer, an exchange rate associated with acryptocurrency. The method further comprising receiving, by theprocessing network computer, a sell request message indicating a sellrequest for a cryptocurrency amount, the cryptocurrency amount beingbased at least in part on the fiat currency amount and the exchange rateassociated with the cryptocurrency. The method further comprisingtransmitting, by the processing network computer, the sell requestmessage to an exchange computer. The method further comprisingreceiving, by the processing network computer, a sell response messageindicating that the sell request was successful. The method furthercomprising maintaining, by the processing network computer, informationrelated to the sell response message in an electronic ledger. The methodfurther comprising transmitting, by the processing network computer, thesell response message to the authorizing entity computer, whereintransmitting the sell response message causes the authorizing entitycomputer to transmit an authorization response message indicating thatthe transaction is authorized.

Further details regarding embodiments of the invention can be found inthe Detailed Description and the Figures.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows a block diagram of a system for performing a transactionutilizing cryptocurrency.

FIG. 2 shows a block diagram of an exemplary user device according to anembodiment of the invention.

FIG. 3 shows a block diagram of an exemplary portal server computeraccording to an embodiment of the invention.

FIG. 4 shows a block diagram of an exemplary wallet server computeraccording to an embodiment of the invention.

FIG. 5 shows a block diagram of an exemplary processing network computeraccording to an embodiment of the invention.

FIG. 6 shows an exemplary ledger utilized for settlement according to anembodiment of the invention.

FIG. 7 shows a block diagram of an exemplary authorizing entity computeraccording to an embodiment of the invention.

FIG. 8 shows a block diagram of an exemplary exchange computer accordingto an embodiment of the invention.

FIG. 9 shows a flow diagram illustrating a method for performing acryptocurrency exchange according to an embodiment of the invention.

FIG. 10 shows a flow diagram illustrating a method for funding a walletaccount with cryptocurrency utilizing a cryptocurrency network accordingto an embodiment of the invention.

FIG. 11 shows a flow diagram illustrating a method for performing atransaction utilizing cryptocurrency according to an embodiment of theinvention.

FIG. 12 shows a flow diagram illustrating a method for cryptocurrencysettlement according to an embodiment of the invention.

DETAILED DESCRIPTION

Embodiments of the present invention are directed to conductingtransactions for the exchange of goods and/or services utilizingcryptocurrency. Although examples herein may utilize a particularcryptocurrency for illustrative purposes, it should be appreciated thatsuch examples may utilize any suitable cryptocurrency including, but notlimited to, Bitcoin, Litecoin, Ethereum, Zcash, Dash, Ripple, andMonero. Initially, a user may access a website hosted by an authorizingentity to create a cryptocurrency account that may be associated with apayment device (e.g., a debit card). The user may transfer pre-existingcryptocurrency (e.g., Bitcoin) into the cryptocurrency account and theauthorizing entity may manage the cryptocurrency account on behalf ofthe user. Separately, the authorizing entity may execute a process topurchase an amount of cryptocurrency utilizing an exchange thatfacilitates the purchase and sale of cryptocurrency between parties ofthe exchange. The exchange may operate separate from a cryptocurrencynetwork that traditionally manages transfers of cryptocurrency betweenparties. The exchange may maintain the purchased cryptocurrency withinan exchange account on behalf of the authorizing entity. Once the userhas funded his cryptocurrency account, and the authorizing entity hascryptocurrency within its exchange account, a transaction for goodsand/or services may be conducted utilizing cryptocurrency.

By way of example, the user can present a payment device (e.g., a debitcard) at an access device to initiate a transaction. An authorizationrequest message including payment credentials of the user (e.g., a debitcard number, a payment account number, etc.) and indicating atransaction amount in fiat currency may be transmitted to an authorizingentity computer in the conventional manner. Upon receipt of theauthorization request message, the authorizing entity computer maydetermine that the payment device indicated in the authorization requestmessage is associated with a cryptocurrency account. The authorizingentity may ascertain the cryptocurrency account balance of the user,determine a cryptocurrency amount that is equivalent to the fiatcurrency amount (e.g., based on a current exchange rate of thecryptocurrency) included in the authorization request message, andrequest, via a processing network computer, that the cryptocurrencyexchange sell the corresponding cryptocurrency amount within theexchange. If the exchange is successful in facilitating a sale of therequested cryptocurrency amount, the exchange may transfer the soldcryptocurrency to the exchange account of the buyer, and the fiatcurrency of the buyer to the exchange account of the authorizing entity.The exchange may communicate its success to the authorizing entity viathe processing network computer. Once the authorizing entity has beennotified of the successful sale, the authorizing entity may transmit atraditional authorization response message indicating that the originaltransaction is authorized. At a later time, the processing networkcomputer may perform a settlement process to between financialinstitutions (e.g., a financial institution managing an account onbehalf of the merchant and the Issuer). The payment processing networkcomputer may additionally perform a settlement process between theIssuer and the exchange.

Existing mechanisms for transferring cryptocurrency can take asubstantial period of time to complete due to the inherent latency ofcryptocurrency networks. Thus, even if two parties wanted to exchangegoods and/or services for cryptocurrency, both parties had (or created)a cryptocurrency account within the cryptocurrency network, and theparties performed a transfer, the transfer of the cryptocurrency couldnot be performed in near real-time. Thus, the inherent latency issues ofconventional cryptocurrency networks make performing transactions withcryptocurrency impractical. By utilizing the techniques describedherein, a user may perform a transaction in a traditional manner (e.g.,by entering his debit card number, by swiping the debit card, etc.). Tothe other party (e.g., the merchant), the transaction occurs in the samemanner as a fiat currency transaction. In fact, the merchant may beoblivious to the eventual usage of cryptocurrency entirely.Additionally, the techniques provided herein allow for the transactionto complete in near real-time, making the use of cryptocurrency toconduct a transaction far more practical.

Prior to discussing specific embodiments of the invention, some termsmay be described in detail.

A “user device” may comprise any suitable electronic device that may betransported and operated by a user, which may also provide remotecommunication capabilities to a network. Examples of remotecommunication capabilities include using a mobile phone (wireless)network, wireless data network (e.g. 3G, 4G or similar networks), Wi-Fi,Wi-Max, or any other communication medium that may provide access to anetwork such as the Internet or a private network. Examples of userdevices include mobile phones (e.g. cellular phones), PDAs, tabletcomputers, net books, laptop computers, personal music players,hand-held specialized readers, etc. Further examples of user devicesinclude wearable devices, such as smart watches, fitness bands, anklebracelets, rings, earrings, etc., as well as automobiles with remotecommunication capabilities. A user device may comprise any suitablehardware and software for performing such functions, and may alsoinclude multiple devices or components (e.g. when a device has remoteaccess to a network by tethering to another device—i.e. using the otherdevice as a modem—both devices taken together may be considered a singleuser device).

A “payment device” may include any suitable device that may be used toconduct a financial transaction, such as to provide payment credentialsto a merchant. The payment device may be a software object, a hardwareobject, or a physical object. As examples of physical objects, thepayment device may comprise a substrate such as a paper or plastic card,and information that is printed, embossed, encoded, or otherwiseincluded at or near a surface of an object. A hardware object can relateto circuitry (e.g., permanent voltage values), and a software object canrelate to non-permanent data stored on a device. A payment device may beassociated with a value such as a monetary value, a cryptocurrencyamount, a discount, or store credit, and a payment device may beassociated with an entity such as a bank, a merchant, a paymentprocessing network, or a person. A payment device may be used to make apayment transaction. Suitable payment devices can be hand-held andcompact so that they can fit into a user's wallet and/or pocket (e.g.,pocket-sized). Example payment devices may include smart cards, magneticstripe cards, keychain devices (such as the Speedpass™ commerciallyavailable from Exxon-Mobil Corp.), etc. If the payment device is in theform of a debit, credit, or smartcard, the payment device may alsooptionally have features such as magnetic stripes. Such devices canoperate in either a contact or contactless mode. In some embodiments, amobile device can function as a payment device (e.g., a mobile devicecan store and be able to transmit payment credentials for atransaction).

“Payment credentials” may include any suitable information associatedwith an account (e.g. a payment account and/or payment device associatedwith the account). Such information may be directly related to theaccount or may be derived from information related to the account.Examples of account information may include a PAN (primary accountnumber or “account number”), user name, expiration date, CVV (cardverification value), dCVV (dynamic card verification value), CVV2 (cardverification value 2), CVC3 card verification values, etc. CVV2 isgenerally understood to be a static verification value associated with apayment device. CVV2 values are generally visible to a user (e.g., aconsumer), whereas CVV and dCVV values are typically embedded in memoryor authorization request messages and are not readily known to the user(although they are known to the issuer and payment processors). Paymentcredentials may be any information that identifies or is associated witha payment account. Payment credentials may be provided in order to makea payment from a payment account. Payment credentials can also include auser name, an expiration date, a gift card number or code, and any othersuitable information.

An “application” may be computer code or other data stored on a computerreadable medium (e.g. memory element or secure element) that may beexecutable by a processor to complete a task.

A “user” may include an individual. In some embodiments, a user may beassociated with one or more personal accounts and/or mobile devices. Theuser may also be referred to as a cardholder, account holder, orconsumer.

A “resource provider” may be an entity that can provide a resource suchas goods, services, information, and/or access. Examples of a resourceprovider includes merchants, access devices, secure data access points,etc. A “merchant” may typically be an entity that engages intransactions and can sell goods or services, or provide access to goodsor services.

An “acquirer” may typically be a business entity (e.g., a commercialbank) that has a business relationship with a particular merchant orother entity. Some entities can perform both issuer and acquirerfunctions. Some embodiments may encompass such single entityissuer-acquirers. An acquirer may operate an acquirer computer, whichcan also be generically referred to as a “transport computer”.

An “authorizing entity” may be an entity that authorizes a request.Examples of an authorizing entity may be an issuer, a governmentalagency, a document repository, an access administrator, etc. An “issuer”may typically refer to a business entity (e.g., a bank) that maintainsan account for a user. An issuer may also issue payment credentialsstored on a user device, such as a cellular telephone, smart card,tablet, or laptop to the consumer.

An “access device” may be any suitable device that provides access to aremote system. An access device may also be used for communicating witha merchant computer, a transaction processing computer, anauthentication computer, or any other suitable system. An access devicemay generally be located in any suitable location, such as at thelocation of a merchant. An access device may be in any suitable form.Some examples of access devices include POS or point of sale devices(e.g., POS terminals), cellular phones, PDAs, personal computers (PCs),tablet PCs, hand-held specialized readers, set-top boxes, electroniccash registers (ECRs), automated teller machines (ATMs), virtual cashregisters (VCRs), kiosks, security systems, access systems, and thelike. An access device may use any suitable contact or contactless modeof operation to send or receive data from, or associated with, a usermobile device. In some embodiments, where an access device may comprisea POS terminal, any suitable POS terminal may be used and may include areader, a processor, and a computer-readable medium. A reader mayinclude any suitable contact or contactless mode of operation. Forexample, exemplary card readers can include radio frequency (RF)antennas, optical scanners, bar code readers, or magnetic stripe readersto interact with a payment device and/or mobile device. In someembodiments, a cellular phone, tablet, or other dedicated wirelessdevice used as a POS terminal may be referred to as a mobile point ofsale or an “mPOS” terminal.

A “digital wallet” may contain electronic information for conductingtransactions. A digital wallet may store user profile information,payment credentials, bank account information, cryptocurrency accountinformation, one or more digital wallet identifiers and/or the like andcan be used in a variety of transactions, such as but not limited toeCommerce, social networks, money transfer/personal payments, mobilecommerce, proximity payments, gaming, and/or the like for retailpurchases, digital goods purchases, utility payments, purchasing gamesor gaming credits from gaming websites, transferring funds betweenusers, and/or the like. A digital wallet may be designed to streamlinethe purchase and payment process. A digital wallet may allow the user toload one or more payment cards onto the digital wallet so as to make apayment without having to enter an account number or present a physicalcard.

A “digital wallet provider” may include an entity, such as an issuingbank, that issues a digital wallet to a user that enables the user toconduct financial transactions. A digital wallet provider may providestandalone user-facing software applications that store account numberson behalf of a cardholder (or other user) to facilitate payments at morethan one unrelated merchant, perform person-to-person payments, or loadfinancial value into the digital wallet. A digital wallet provider mayenable a user to access its account via a personal computer, mobiledevice or access device. Additionally, a digital wallet provider mayalso provide one or more of the following functions: storing one or morepayment cards, maintaining one or more cryptocurrency accounts, storingother information including billing address, shipping addresses, andtransaction history, initiating a transaction by one or more methods,such as providing a user name and password, NFC or a physical token, andmay facilitate pass-through or two-step transactions.

An “exchange” may be an entity that facilitates exchanges ofcryptocurrency and fiat currency between parties. The exchange maymanage any suitable number of accounts associated with registeredparties. Users that with to sell cryptocurrency may conduct acryptocurrency transaction to transfer their cryptocurrency to theexchange and the exchange may manage the cryptocurrency on behalf of theuser. Users may additionally, or alternatively, transfer fiat currencyto the exchange and the exchange may manage the users' fiat currencywithin the exchange. A user may provide the exchange a “buy request”indicating that the user wishes to purchase a particular amount ofcryptocurrency for a particular amount (or within a range of theparticular amount) of fiat currency. Users may also provide the exchangea “sell request” indicating that the user wishes to sell cryptocurrencyfor a particular amount (or within a range of the particular amount) offiat currency. The exchange may be configured to match a buy requests toa sell request in order to identify a buyer that is willing to purchasecryptocurrency at the fiat currency amount (or within the range) atwhich the seller is interested in selling. If a match is found, theexchange can facilitate a transfer of the fiat currency from the buyer'saccount within the exchange to the seller's account within the exchange.The exchange can also facilitate the transfer of the cryptocurrency fromthe seller's account within the exchange to the buyer's account withinthe exchange.

A “cryptocurrency network” may include a one or more computers thatparticipate in maintaining a cryptocurrency ledger. In somecryptocurrency networks, the distributed cryptocurrency ledger maycomprise a blockchain. A “blockchain” is a decentralized and distributeddigital ledger that is used to record transactions across many computersso that the record cannot be altered retroactively without thealteration of all subsequent blocks and the collusion of the network.Examples of a cryptocurrency network may include networks of computersthat manage any suitable cryptocurrency including, but not limited to,Bitcoin, Litecoin, Ethereum, Zcash, Dash, Ripple, and Monero.

An “authorization request message” may be an electronic message thatrequests authorization for a transaction. In some embodiments, it issent to a transaction processing computer and/or an issuer of a paymentcard to request authorization for a transaction. An authorizationrequest message according to some embodiments may comply with ISO 8583,which is a standard for systems that exchange electronic transactioninformation associated with a payment made by a user using a paymentdevice or payment account. The authorization request message may includean issuer account identifier that may be associated with a paymentdevice or payment account. An authorization request message may alsocomprise additional data elements corresponding to “identificationinformation” including, by way of example only: a service code, a CVV(card verification value), a dCVV (dynamic card verification value), aPAN (primary account number or “account number”), a payment token, auser name, an expiration date, etc. An authorization request message mayalso comprise “transaction information,” such as any informationassociated with a current transaction, such as the transaction amount,merchant identifier, merchant location, acquirer bank identificationnumber (BIN), card acceptor ID, information identifying items beingpurchased, etc., as well as any other information that may be utilizedin determining whether to identify and/or authorize a transaction.

An “authorization response message” may be a message that responds to anauthorization request. In some cases, it may be an electronic messagereply to an authorization request message generated by an issuingfinancial institution or a transaction processing computer. Theauthorization response message may include, by way of example only, oneor more of the following status indicators: Approval—transaction wasapproved; Decline—transaction was not approved; or Call Center—responsepending more information, merchant must call the toll-free authorizationphone number. The authorization response message may also include anauthorization code, which may be a code that a credit card issuing bankreturns in response to an authorization request message in an electronicmessage (either directly or through the transaction processing computer)to the merchant's access device (e.g. POS equipment) that indicatesapproval of the transaction. The code may serve as proof ofauthorization. As noted above, in some embodiments, a transactionprocessing computer may generate or forward the authorization responsemessage to the merchant.

A “server computer” may include a powerful computer or cluster ofcomputers. For example, the server computer can be a large mainframe, aminicomputer cluster, or a group of servers functioning as a unit. Inone example, the server computer may be a database server coupled to aWeb server. The server computer may be coupled to a database and mayinclude any hardware, software, other logic, or combination of thepreceding for servicing the requests from one or more client computers.The server computer may comprise one or more computational apparatusesand may use any of a variety of computing structures, arrangements, andcompilations for servicing the requests from one or more clientcomputers.

FIG. 1 shows a block diagram of a system 100 for performing atransaction utilizing cryptocurrency. The system 100 comprises a numberof components. The system 100 may comprise a user device 102 which maybe associated with a user 103, a portal server computer 104, a walletserver computer 106, a cryptocurrency network computer 108, a paymentdevice 109 associated with the user 103, an access device 110, aresource provider computer 112, a transport computer 114, a processingnetwork computer 116, an exchange computer 118, and an authorizingentity computer 120.

The user device 102, the portal server computer 104, the wallet servercomputer 106, the cryptocurrency network computer 108, the paymentdevice 109, the access device 110, the resource provider computer 112,the transport computer 114, the processing network computer 116, theexchange computer 118, and the authorizing entity computer 120 may allbe in operative communication with each other through any suitablecommunication channel or communications network. Suitable communicationsnetworks may be any one and/or the combination of the following: adirect interconnection; the Internet; a Local Area Network (LAN); aMetropolitan Area Network (MAN); an Operating Missions as Nodes on theInternet (OMNI); a secured custom connection; a Wide Area Network (WAN);a wireless network (e.g., employing protocols such as, but not limitedto a Wireless Application Protocol (WAP), I-mode, and/or the like);and/or the like.

Messages between the computers, networks, and devices may be transmittedusing a secure communications protocols such as, but not limited to,File Transfer Protocol (FTP); HyperText Transfer Protocol (HTTP); SecureHypertext Transfer Protocol (HTTPS), Secure Socket Layer (SSL), ISO(e.g., ISO 8583) and/or the like.

The user 103 may be able to use the user device 102 to create and/ormanage a cryptocurrency account. By way of example, the user 103,utilizing application 102A operating on the user device 102 may access awebsite hosted by the portal server computer 104. In some embodiments,the portal server computer 104 may be configured to host a website onbehalf of an authorizing entity (e.g., an Issuer of the payment device109). Through the application 102A (e.g., a wallet application, abrowser application, etc.), the portal server computer 104 may provideany suitable number of interfaces to enable the user 103 to create acryptocurrency account and/or to modify an existing cryptocurrencyaccount. The portal server computer 104 may receive information of theuser (e.g., a cryptocurrency amount, a cryptocurrency network identifierassociated with the user, etc.) and provide such information to thewallet server computer 106. The portal server computer 104 may befurther configured to receive cryptocurrency account information (e.g.,a cryptocurrency account balance provided by the wallet server computer106) and provide such information on the website for viewing by the user103.

An example of the user device 102 according to an embodiment of theinvention, is shown in FIG. 2. In some embodiments, user device 102 mayinclude circuitry that is used to enable certain device functions, suchas telephony. The functional elements responsible for enabling thosefunctions may include a processor 102B that can execute instructionsthat implement the functions and operations of the device. Processor1026 may access the memory 102F (or another suitable data storage regionor element) to retrieve instructions or data used in executing theinstructions, such as provisioning scripts and mobile applications. Datainput/output elements 102D, such as a keyboard or touchscreen, may beused to enable a user to operate the user device 102 and input data.Data input/output elements may also be configured to output data (via aspeaker of the device, for example). Display 102C may also be used tooutput data to a user. Communications element 102E may be used to enabledata transfer between user device 102 and a wired or wireless network(via antenna 102G, for example) to assist in connectivity to theInternet or other network, and enabling data transfer functions.

In some embodiments, user device 102 may also include contactlesselement interface to enable data transfer between contactless element(not shown) and other elements of the device, where contactless elementmay include a secure memory and a near field communications datatransfer element (or another form of short range communicationstechnology). A cellular phone or similar device is an example of a userdevice 102 that may be used in accordance with embodiments of thepresent invention. However, other forms or types of devices may be usedwithout departing from the underlying concepts of the invention. Forexample, the user device 102 may alternatively be in the form of apayment card, a key fob, a PDA, a tablet computer, a net book, a laptopcomputer, a smart watch, an automobile with remote capabilities, etc.

The memory 102F may comprise an application 102A and/or any othersuitable module or data. The user device 102 may have any number ofmobile applications installed or stored on the memory 102F and is notlimited to that shown in FIG. 2. The memory 102F may also comprise code,executable by the processor 102B for implementing the methods discussedherein.

The application 102A (e.g., a digital wallet application, a browserapplication, etc.) may be configured to render at least one userinterface provided by the portal server computer 104. The application102A may, in some examples, be configured to access one or more Internetwebsites (e.g., associated with a cryptocurrency account, associatedwith an Issuer, etc.) to provide input and initiate, facilitate, andmanage cryptocurrency account transactions. In some embodiments,application 102A may be configured to access a website associated withand/or provided by the portal server computer 104, the wallet servercomputer 106, the resource provider computer 112, the authorizing entitycomputer 120, the transport computer 114, the processing networkcomputer 116, or any other suitable entity.

An example of the portal server computer 104, according to an embodimentof the invention, is shown in FIG. 3. The portal server computer 104comprises a processor 104A, a network interface 104B, a database 104C,and a computer readable medium 104D.

The computer readable medium 104D may comprise an interface module 104E.The computer readable medium 104D may also comprise code, executable bythe processor 104A for implementing the methods discussed herein.

The interface module 104E may comprise code that causes the processor104A to provide one or more user interfaces associated with anauthorizing entity (e.g., an Issuer). By way of example, the interfacemodule 104E may comprise code that, when executed, causes the processor104A to provide a webpage for creating a cryptocurrency account and/ordisplaying cryptocurrency account information of an existingcryptocurrency account. Information for providing the webpage may bestored and/or retrieved from database 104C by the processor 104A. Theinterface module 104E may be configured to cause the processor 104A toreceive cryptocurrency account information such as a type ofcryptocurrency, an amount of cryptocurrency to be associated with thecryptocurrency account, a cryptocurrency identifier associated with theuser 103, a cryptocurrency network identifier (e.g., an identifierassociated with a cryptocurrency network), or any suitable informationfor conducting a cryptocurrency transaction between the user and theauthorizing entity within a cryptocurrency network. The interface module104E may be configured to cause the processor 104A to provide anysuitable cryptocurrency information to the wallet server computer 106 ofFIG. 1.

Returning to FIG. 1, the wallet server computer 106 may be configured tocreate and/or manage a cryptocurrency account on behalf of the user. Thecryptocurrency account may be associated with a payment account of anauthorizing entity (e.g., an Issuer) and/or the payment device 109. Thewallet server computer 106 may be configured to interact with acryptocurrency network computer 108 to perform cryptocurrencytransactions (e.g., a transfer of cryptocurrency from the user 103 to anauthorizing entity/Issuer). The wallet server computer 106 may beconfigured to provide balance information associated with thecryptocurrency account, deduct cryptocurrency from the account, addcryptocurrency to the account, and any suitable transaction related tothe cryptocurrency account.

An example of the wallet server computer 106, according to an embodimentof the invention, is shown in FIG. 4. The wallet server computer 106 maycomprise a processor 106A, a network interface 106B, a database 106C,and a computer readable medium 106D.

The computer readable medium 106D may comprise a management module 106Eand a transfer module 106F. The computer readable medium 106D may alsocomprise code, executable by the processor 106A for implementing themethods discussed herein.

The management module 106E may comprise code that causes the processor106A to create and/or manage one or more cryptocurrency accounts onbehalf of the user. By way of example, the management module 106E may beconfigured to cause the processor 106A to receive cryptocurrency accountinformation (e.g., a type of cryptocurrency, an account balance ofcryptocurrency, a cryptocurrency identifier associated with the user 103and a cryptocurrency network (e.g., a Bitcoin network), a paymentaccount number (e.g., a PAN) associated with the payment device 109,etc.) from the portal server computer 104 of FIGS. 1 and 3. In someexamples, the management module 106E may comprise code that, whenexecuted by the processor 106A, causes the processor 106A to store atleast some portion of the cryptocurrency account information in thedatabase 106C.

The transfer module 106F may comprise code that, when executed, causesthe processor 106A to determine that the user 103 is requesting that anamount of pre-existing cryptocurrency be associated with thecryptocurrency account. Accordingly, the transfer module 106F maycomprise code that causes the processor 106A to conduct a transactionwith the cryptocurrency network computer 108 of FIG. 1. The transactionmay cause the cryptocurrency network computer 108 to transfer therequested amount of cryptocurrency from the user 103 to an Issuerassociated with the wallet server computer 106. Once transferred, thetransfer module 106F may comprise code that causes the processor 106A todetermine that the transfer was successful and to associate the amountof cryptocurrency transferred with the cryptocurrency account of theuser 103. The cryptocurrency amount may be maintained in the database106C in a record associated with a cryptocurrency account of the user103.

Returning to FIG. 1, the processing network computer 116 may beconfigured to process transaction between the user 103 (e.g., utilizingthe payment device 109) and the resource provider associated with theresource provider computer 112. The processing network computer 116 maybe further configured to facilitate transactions between the authorizingentity computer 120 and the exchange computer 118. In some examples, theprocessing network computer 116 may be configured to conduct asettlement process between the transport computer associated with anAcquirer (e.g., a financial institution associated with the resourceprovider) and an Issuer (e.g., a financial institution associated withthe user 103). In still further examples, the processing networkcomputer 116 may be configured to conduct a separate settlement processbetween the Issuer and an exchange associated with the exchange computer118.

As shown in FIG. 1, the processing network computer 116 may be disposedbetween the transport computer 114 and the authorizing entity computer120 and between the authorizing entity computer 120 and the exchangecomputer 118. The processing network computer 116 may include dataprocessing subsystems, networks, and operations used to support anddeliver authorization services, exception file services, and clearingand settlement services. For example, the processing network computer116 may comprise a server coupled to a network interface (e.g., by anexternal communication interface), and databases of information. Theprocessing network computer 116 may be representative of a transactionprocessing network. An exemplary transaction processing network mayinclude VisaNet™. Transaction processing networks such as VisaNet™ areable to process credit card transactions, debit card transactions, andother types of commercial transactions. VisaNet™, in particular,includes a VIP system (Visa Integrated Payments system) which processesauthorization requests and a Base II system which performs clearing andsettlement services. The processing network computer 116 may use anysuitable wired or wireless network, including the Internet.

An example of the processing network computer 116, according to anembodiment of the invention, is shown in FIG. 5. The processing networkcomputer 116 may comprise a processor 116A, a network interface 116B, adatabase 116C, and a computer readable medium 116D.

The computer readable medium 116D may comprise a 116E, a ledgermanagement module 116F, and a settlement module 116G. The computerreadable medium 106D may also comprise code, executable by the processor106A for implementing the methods discussed herein.

The processing module 116E may comprise code that, when executed, causesthe processor 116A to process transactions. While processingtransactions, the processor 116A may receive and process authorizationrequest messages and transmit authorization response messages associatedwith a transaction between the user 103 and a resource provider (e.g., amerchant). The resource provider may be associated with the resourceprovider computer 112. For example, the processing module 116E maycontain logic that causes the processor 116A to forward, authorize, orreject authorization request messages for payment transactions.

The exchange module 116H may comprise code that, when executed, causesthe processor 116A to obtain a current exchange rate from an exchangecomputer 118. The processor 116A may be configured to receive anexchange rate request message from the authorizing entity computer 120and to convey the request to exchange computer 118. The processor 116Amay further be configured to receive an exchange rate response messageindicating a current exchange rate, and to convey that exchange rateresponse message to authorizing entity computer 120.

The ledger management module 116F may comprise code that, when executed,causes the processor 116A to store transaction records in the database116C. For example, the database 116C may include a record of eachcompleted transaction between a resource provider and an Issuer. Therecord may include transaction details (e.g. items purchased, amount,timestamp), resource provider information, user 103 information (e.g. aname, a phone number and/or other contact information, a payment token,an expiration date, etc.), and/or any other suitable information. Thedatabase 116C may additionally, or alternatively include a record ofeach completed transaction between an Issuer and an exchange. Theexchange may be associated with the exchange computer 118 of FIG. 1.This record may include transaction details such as an issueridentifier, an exchange identifier, user information associated with theuser 103, a fiat currency transaction amount, a cryptocurrencytransaction amount, a transaction date/time, and/or any other suitableinformation. A ledger of transaction details for transaction between anIssuer and an exchange is provided in FIG. 6.

The ledger 600 of FIG. 6 includes individual records indicatingindividual transactions between a number of Issuers and a number ofexchanges. The ledger, in this example, includes an issuer identifier602 associated with an Issuer, an exchange identifier 604 associatedwith an exchange, a fiat currency transaction amount 606 (in this case,in U.S. Dollars), a cryptocurrency transaction amount 608 (e.g., in thiscase a Bitcoin amount), and a transaction time 610. By way of exampleonly, the record 612 indicates that the exchange “Coin BB” conducted atransaction on behalf of the Issuer “DDS” on May 18, 2016 atapproximately 12:02:13 in the morning (e.g., UTC time) that sold 0.51Bitcoins of the Issuer for $1000 U.S. Dollars. It should be appreciatedthat the ledger 600 is meant to be illustrative in nature and is notintended to limit the scope of this disclosure. Other records formaintaining transaction data are contemplated.

Returning to FIG. 5, the settlement module 116G may be configured toaggregate transactions from the ledger(s) maintained by the ledgermanagement module 116F in order to conduct one or more settlementprocesses between an Acquirer and Issuer and/or between an Issuer and anexchange. By way of example only, the settlement module 116G maycomprise code that, when executed, causes the processor 116A to transmitdata to authorizing entity computer 120 (or another computer operated onbehalf of an Issuer) indicating how much Bitcoin the Issuer sold withina settlement window (e.g., a time range). The settlement module 116G maycomprise code that, when executed, causes the processor 116A to transmitdata to exchange computer 118 indicating how fiat currency currentlyheld by the exchange is needing to be transferred to a particularIssuer.

An example of the authorizing entity computer 120, according to anembodiment of the invention, is shown in FIG. 7. The authorizing entitycomputer 120 may comprise a processor 120A, a network interface 120B, adatabase 120C, and a computer readable medium 120D.

The computer readable medium 120D may comprise a management module 120E,a reservation module 120F, a transaction module 120G, an exchange module120H, and a settlement module 120I. The computer readable medium 120Dmay also comprise code, executable by the processor 120A forimplementing the methods discussed herein.

The management module 120E may comprise code that, when executed, causethe processor 120A to issue and/or manage a payment account and anassociated payment device 109 of the user 103.

The reservation module 120F may comprise code that, when executed,causes the processor 120A to determine an amount of cryptocurrencyneeded by the Issuer. The amount of cryptocurrency needed may, in somecases, depend on a number of issued debit cards that are associated witha cryptocurrency account and/or cryptocurrency amount limits associatedwith those issued debit cards. The reservation module 120F may comprisecode that, when executed, causes the processor 120A to transmit a buyrequest message to exchange computer for the necessary cryptocurrencyamount. The buy request message may indicate an amount of cryptocurrencyto purchase, an amount of fiat currency to be exchanged forcryptocurrency, an acceptable buy price/price range, or the like. Thereservation module 120F may comprise code that, when executed, causesthe processor 120A to receive a buy response message. The buy responsemessage may indicate a successful exchange of fiat currency forcryptocurrency or that the exchange was unsuccessful. The reservationmodule 120F may comprise code that, when executed, causes the processor120A perform additional operations depending on the content of the buyresponse message.

The exchange module 120H may comprise code that, when executed, causesthe processor 120A to obtain a current cryptocurrency exchange rate. Forexample, if the processor 120A has determined that a transaction isbeing conducted with a payment account that is associated with acryptocurrency account, the processor 120A may be configured to requesta current exchange rate of the cryptocurrency. The request may betransmitting in an exchange rate request message to processing networkcomputer 116 and forwarded to exchange computer 118. The processor 120Amay be configured to receive an exchange rate response messagecontaining a current exchange rate of a particular type ofcryptocurrency associated with the cryptocurrency account. The exchangerate response message may be provided by the exchange computer 118 tothe authorizing entity computer 120 via the processing network computer116. The current exchange rate may be provided to the transaction module120G for calculations related to transaction processing.

The transaction module 120G may comprise code that, when executed,causes the processor 120A to process and/or authorize transactions.Before authorizing a transaction, the transaction module 120G mayauthenticate payment credentials received in the authorization requestmessage, and check that there is available credit or funds in anassociated payment account. The transaction module 120G may comprisecode that, when executed, causes the processor 120A to determine thatthe payment account is associated with a cryptocurrency balance. Thatis, the transaction module 120G may comprise code that causes theprocessor 120A to request and receive a cryptocurrency amountcorresponding to a balance of cryptocurrency associated with the user103 and/or the payment account. The cryptocurrency balance may, in someembodiments, be provided by the wallet server computer 106 discussedabove.

The transaction module 120G may comprise code that, when executed,causes the processor 120A to receive a current exchange rate. Using thecurrent exchange rate and a transaction amount (in fiat currency)included in the received transaction, the transaction module 120G may beconfigured to cause the processor 120A to determine an equivalent amountof cryptocurrency that corresponds to the fiat currency of thetransaction. The transaction module 120G may comprise code that causesthe processor 120A to transmit a sell request message. The sell requestmessage may indicate the amount of cryptocurrency the Issuer wishes tosell (e.g., the amount of cryptocurrency determined above), a saleprice/price range, an Issuer identifier, or any suitable informationthat may be utilized by exchange computer 118 to sell cryptocurrency ofthe Issuer to a buyer participating in the exchange. The exchange module120H may cause the processor 120A to receive a sell response messageindicating that the sale was successful or unsuccessful. In some cases,the sell request message and/or the sell response message may betransmitted from the authorizing entity computer 120 to the exchangecomputer 118 via the processing network computer 116.

The transaction module 120G may comprise code that, when executed,causes the processor 120A to perform operations for transferringcryptocurrency to the exchange as part of a settlement process. Forexample, the processor 120A may receive a settlement message (e.g., fromthe processing network computer 116) that indicates an amount ofcryptocurrency that was sold in a settlement time window. The processor120A may then facilitate a transfer of cryptocurrency of the Issuer tothe exchange. The transfer may be conducted with a cryptocurrencynetwork computer such as cryptocurrency network computer 108 of FIG. 1.

An example of the exchange computer 118, according to an embodiment ofthe invention, is shown in FIG. 8. The exchange computer 118 maycomprise a processor 118A, a network interface 1186, a database 118C,and a computer readable medium 118D.

The computer readable medium 118D may comprise a registration module118E, an exchange module 118F, and a settlement module 118G. Thecomputer readable medium 118D may also comprise code, executable by theprocessor 118A for implementing the methods discussed herein.

The registration module 118E may comprise code that, when executed,causes the processor 118A to receive registration information associatedwith an exchange user (e.g., an Issuer, a cryptocurrency seller, etc.).The registration module 118E may cause the processor 118A to maintain anexchange account using the registration information. A recordmaintaining exchange account information may be stored in the database118C. For example, the record may indicating a cryptocurrency amount, afiat currency amount, past transaction information, etc. The exchangecomputer 118 may maintain exchange accounts for any suitable number ofusers, including one or more Issuers.

The exchange module 118F may comprise code that, when executed, causesthe processor 118A to provide a current cryptocurrency exchange rate.For example, the processor 118A may be configured to receive an exchangerate request message. The exchange rate request message may be receivedfrom the processing network computer 116 and/or from the authorizingentity computer 120. The processor 118A may be configured to provide anexchange rate response message containing a current exchange rate of aparticular type of cryptocurrency associated with the exchange raterequest message. The exchange rate response message may be provided bythe processor 118A to the authorizing entity computer 120 directly, orvia the processing network computer 116.

The exchange module 118F may comprise code that, when executed, causesthe processor 118A to receive a buy request message. The buy requestmessage may be associated with an Issue and received directly from anauthorizing entity computer 120 or the buy request message may bereceived via processing network computer 116. In some examples, the buyrequest message is associated with another participant of the exchange.A buy request message may indicate an exchange identifier associatedwith a buyer, an amount of cryptocurrency to purchase, an amount of fiatcurrency to be exchanged for cryptocurrency, an acceptable buyprice/price range, or the like. Any suitable parameters may be includedin the buy request message to facilitate a purchase of cryptocurrencyfor fiat currency.

The exchange module 118F may comprise code that, when executed, causesthe processor 118A to receive a sell request message. The sell requestmessage may be received directly from an authorizing entity computer120, or the sell request message may be received via processing networkcomputer 116. In some examples, the sell request message is associatedwith another participant of the exchange. The sell request message mayindicate an exchange identifier associated with a seller, an amount ofcryptocurrency to sell, an acceptable sale price/price range in fiatcurrency, or the like. Any suitable parameters may be included in thesell request message to facilitate a sale of cryptocurrency for fiatcurrency.

The exchange module 118F may comprise code that, when executed by theprocessor 118A, performs operations comprising matching a buy request toa sell request of one or more users of the exchange. If a matching sellrequest is found, the exchange module 118F may facilitate a transfer ofcryptocurrency from the seller's exchange account to an exchange accountof the buyer and a transfer of fiat currency from the buyer's exchangeaccount to an exchange account of the seller. The exchange module 118Fmay comprise code that, when executed, causes the processor 118A totransmit a buy response message. The buy response message may indicate asuccessful exchange of fiat currency for cryptocurrency or that theexchange was unsuccessful.

The settlement module 118G may comprise code that, when executed, causesthe processor 118A to perform operations for transferring fiat currencyto an Issuer as part of a settlement process. For example, the processor118A may receive a settlement message (e.g., from the processing networkcomputer 116) that indicates an amount of fiat currency that wasobtained via one or more cryptocurrency sales by the Issuer within asettlement time window. The processor 118A may then facilitate atransfer of fiat currency to the Issuer and may update accountinformation (e.g., a fiat currency balance) of the Issuer's accountwithin the exchange. The transfer may be conducted with conventionalmethods of fiat currency transfer.

FIGS. 9-12 are directed to methods 900-1200. The steps shown in themethods 900-1200 may be performed sequentially or in any suitable orderin embodiments of the invention. In some embodiments, one or more of thesteps may be optional. The various messages described below for themethods 900-1200 may use any suitable form of communication. In someembodiments, a request or response may be in an electronic messageformat, such as an e-mail, a short messaging service (SMS) message, amultimedia messaging service (MMS) message, a hypertext transferprotocol (HTTP) request message, a transmission control protocol (TCP)packet, a web form submission. The request or response may be directedto any suitable location, such as an e-mail address, a telephone number,an internet protocol (IP) address, or a uniform resource locator (URL).In some embodiments, a request or response may comprise a mix ofdifferent message types, such as both email and SMS messages.

FIG. 9 shows a flow diagram illustrating a method 900 for performing acryptocurrency exchange according to an embodiment of the invention. Itassumed, for the purposes of this example, that an Issuer associatedwith the authorizing entity computer 120 has already registered andfunded (e.g., with fiat currency) an exchange account managed by theexchange computer 118. The method may begin at 902, where a component ofauthorizing entity computer 120 (e.g., the reservation module 120F) maycause the processor 120A to determine a cryptocurrency amount topurchase. In some examples, the cryptocurrency amount may be determinedbased on a number of cryptocurrency related debit cards issued by theIssuer associated with the authorizing entity computer 120. By way ofexample, the Issuer may issue particular debit cards (referred to as aCrypto Debit Card) with which it will allow a cryptocurrency account tobe associated. In some examples, the Issuer may allow any suitablenumber and/or types of cryptocurrency accounts to be associated with theCrypto Debit Card. Thus, the Crypto Debit Card may be associated with auser's bank account that is managed by the Issuer on behalf of the user.The Crypto Debit Card may further be associated with one or morecryptocurrency accounts managed by the wallet provider computer 106 asdiscussed above. In some embodiments, the Issuer may limit the CryptoDebit Cards to each having no more than a particular threshold amount ofcryptocurrency associated with the Crypto Debit Card at any given time.Thus, the reservation module 120F of the authorizing entity computer 120may determine an amount of cryptocurrency to be purchased based at leastin part on the number of Crypto Debit Cards issued and/or thecorresponding cryptocurrency limits associated with such cards.

The method 900 may proceed to 904, where the reservation module 120F ofthe authorizing entity computer 120 may cause the processor 120A totransmit a buy request message to the processing network computer 116. Acomponent of the processing network computer 116 (e.g., the processingmodule 116E) may cause the processor 116A to transmit the buy requestmessage to the exchange computer 118. The buy request message mayinclude a fiat currency amount to be exchange for an amount ofcryptocurrency, an identifier associated with the Issuer, a buyprice/price range, or the like.

The method 900 may proceed to 906, where the processing module 116E (oranother suitable component of the processing network computer 116) maytransmit the buy request message to the exchange computer 118. Acomponent of the exchange computer 118 (e.g., the exchange module 118F)may be configured to cause the processor 118A to receive and process thebuy request message.

The method 900 may proceed to 908, where a component of the exchangecomputer 118 (e.g., the exchange module 118F or another suitablecomponent of the exchange computer 118) may search account informationof at least some portion of exchange participants to determine if a sellrequest message has been received that matches the buy request message.Said another way, the exchange computer 118 may determine whether therea seller that wishes to sell some amount of cryptocurrency for theprice/price range for which the Issuer wishes to buy. If a match isdetermined, the exchange computer 118 may facilitate a transfer of fiatcurrency from the Issuer's exchange account to the seller's exchangeaccount and a transfer of the cryptocurrency of the seller to theIssuer's exchange account.

The method 900 may proceed to 910, where a component of the exchangecomputer 118 (e.g., the exchange module 118F) may transmit a buyresponse message to the processing network computer 116.

The method 900 may proceed to 912, where a component of the processingnetwork computer 116 (e.g., the ledger management module 116F) may beconfigured to cause the processor 118A to receive and process the buyresponse message. In at least one embodiment, the processing networkcomputer 116 may record the transaction associated with the buy responsemessage in a ledger (e.g., the ledger 600 of FIG. 6).

The method 900 may proceed to 914, where a component of the processingnetwork computer 116 (e.g., the ledger management module 116F) maytransmit the buy response message to the authorizing entity computer120. The buy response message may indicate that the purchase of thecryptocurrency associated with the original buy request message wassuccessful or unsuccessful. If the buy response message indicates thatthe sale was unsuccessful, the authorizing entity computer 120 mayperform addition operations to attempt the purchase one or moreadditional times.

FIG. 10 shows a flow diagram illustrating a method 1000 for funding awallet account with cryptocurrency utilizing a cryptocurrency networkaccording to an embodiment of the invention. The method 1000 may beginat 1002, where a user device 102 may be utilized to access a userinterface provided by a component of the portal server computer 104(e.g., interface module 104E of FIG. 3). The user interface may beaccessed via an application (e.g., the application 102A of FIG. 1)operating on the user device 102. The application may be associated withthe wallet server computer 106, the authorizing entity associated withthe wallet server computer 106, or the application may be, for example,a browsing application configured to access the Internet and/or webpageprovided by the portal server computer 104. The user interface may beconfigured to collect information associated with the user.

The method may proceed to 1004, where the information collected via theuser interface is provided to the portal server computer 104. Thecollected information may include a payment account number, a useridentifier, user information such as a name, address, phone numberassociated with the user, an cryptocurrency account identifierassociated with the user within a cryptocurrency network managed by thecryptocurrency network computer 108, an amount of pre-existingcryptocurrency, a type of cryptocurrency account to be associated withthe user, or any suitable combination of the above.

The method may proceed to 1006, where the portal server computer 104 mayforward the information collected via the user interface to the walletserver computer 106.

The method may proceed to 1008, where a component of the wallet servercomputer 106 (e.g., the management module 106E) may create acryptocurrency account and/or associate the cryptocurrency account withthe user and/or the payment account number. The cryptocurrency accountinformation may be stored in a record accessible to the wallet servercomputer 106 (e.g., the database 106C).

The method may proceed to 1010, where a component of the wallet servercomputer 106 (e.g., the transfer module 106F) may execute one or moreoperations to request a cryptocurrency transaction within acryptocurrency network in which the cryptocurrency network computer 108operates. By way of example only, the cryptocurrency network computer108 may be configured to participate in a Bitcoin network.

The method may proceed to 1012, where the cryptocurrency networkcomputer 108 may execute one or more operations to transfer therequested amount of cryptocurrency (e.g., Bitcoin) from the user 103 tothe Issuer associated with the portal server computer 104 and walletserver computer 106.

When the transfer of cryptocurrency has been completed the method mayproceed to 1014, where the cryptocurrency network computer 108 providesan indication that the transfer was successful to the wallet servercomputer 106. Upon receipt, the wallet server computer 106 may updatethe record of the cryptocurrency account to indicate the current balanceof cryptocurrency (e.g., the cryptocurrency amount that was justtransferred from the user to the Issuer).

The method may proceed to 1016, where the wallet server computer 106provides the updated cryptocurrency account information to the portalserver computer 104. The portal server computer 104 may update one ormore user interfaces to provide the updated cryptocurrency accountinformation to the user device 102 at 1018.

FIG. 11 shows a flow diagram illustrating a method 1100 for performing atransaction utilizing cryptocurrency according to an embodiment of theinvention. The method 1100 describes a process in which a user 103 maybe able to use the payment device 109 to conduct a transaction with aresource provider (e.g., a merchant) associated with the resourceprovider computer 112. The resource provider may engage in transactions,sell goods or services, or provide access to goods or services to theuser 103. The resource provider may accept multiple forms of payment(e.g. the payment device 109) and may use multiple tools to conductdifferent types of transactions. For example, the resource provider mayoperate a physical store and use the access device 110 (e.g., a point ofsale device) for in-person transactions. The resource provider may alsosell goods and/or services via a website, and may accept payments overthe Internet.

The payment device 109 (e.g., a debit card) may store informationassociated with the user 103 and/or payment information. For example,the payment device 109 may store payment credentials as well as personalinformation such as a name, address, email address, phone number, or anyother suitable user identification information of the user 103. Thepayment device 109 may provide this information to the access device 110during a transaction.

The payment device 109 may be in the form of a card. For example, thepayment device 109 may comprise a plastic substrate. In someembodiments, a contactless element for interfacing with an access devicemay be present on, or embedded within, the plastic substrate. A magneticstripe may also or alternatively be on the plastic substrate. Userinformation such as an account number, expiration date, and/or a username may be printed or embossed on the card. In some embodiments, thepayment device 109 may comprise a microprocessor and/or memory chipswith user data stored in them.

The method may begin at 1102, where the payment device 109 is presentedto an access device 110 (e.g., a point-of-sale device). By way ofexample, the user 103 may swipe a payment device 109 (e.g., a CryptoDebit Card) at a point-of-sale terminal within a merchant's store orenter in an payment account information associated with the paymentdevice 109 via a website hosted on behalf of the merchant. In eitherscenario, payment account information associated with the payment device109 may be transmitted to the access device 110.

At 1104, the access device 110 may transmit transaction information(e.g. items purchased, transaction amount in fiat currency, etc.),merchant information (e.g. merchant name, location, etc.), paymentinformation (e.g., payment account number), and any other suitableinformation.

At 1106, the resource provider computer 112 may submit an authorizationrequest message for the transaction to the transport computer 114 (whichmay be an acquirer computer. The transport computer 114 may beassociated with the resource provider computer 112, and may manageauthorization requests on behalf of the resource provider computer 112.The authorization request message may include transaction information(e.g. items purchased, transaction amount in fiat currency, etc.),merchant information (e.g. merchant name, location, etc.), paymentinformation (e.g., payment account number), and any other suitableinformation.

At 1108, the transport computer 114 may forward the authorizationrequest message to the processing network computer 116. At 1110, theprocessing network computer 116 may forward the authorization requestmessage to the authorizing entity computer 120.

At 1112, a component (e.g., the transaction module 120G) of theauthorizing entity computer 120 may transmit a balance request messageto the wallet server computer 106. As discussed above, the wallet servercomputer 106 may manage one or more cryptocurrency accounts of theIssuer. The wallet server computer 106 may retrieve (e.g., from thedatabase 106C) the cryptocurrency account balance associated withcryptocurrency account associated with the user 103. The wallet servercomputer 106 may provide the cryptocurrency account balance associatedwith the user 103 at 1114.

At 1116, a component (e.g., the exchange module 120H) of the authorizingentity computer 120 may transmit an exchange rate request message to theprocessing network computer 116. The exchange rate request message mayindicate, among other things, a particular type of cryptocurrency forwhich an exchange rate is requested.

At 1118, a component (e.g., the exchange module 116H) of the processingnetwork computer 116 may forward the exchange rate request message tothe exchange computer 118. The exchange computer 118 may then retrievethe requested exchange rate and transmit the exchange rate in anexchange rate response message back to the processing network computer116 at 1120. The processing network computer may forward the exchangerate response message to the authorizing entity computer 120 at 1122.

At 1124, a component (e.g., the exchange module 120H) of the authorizingentity computer 120 may calculate, based on the exchange rate receivedat 1122, an equivalent amount of cryptocurrency corresponding to thetransaction amount (e.g., in fiat currency) of the transactioninformation received in the authorization request message received at1110. In some examples, the authorizing entity computer 120 may add atransaction fee to the equivalent amount of cryptocurrency to cover anyrisk of exchange rate fluctuation.

At 1126, a component (e.g., the exchange module 120H) of the authorizingentity computer 120 may transmit a sell request message to theprocessing network computer 116. At 1128, the processing networkcomputer 116 may forward the sell request message to the exchangecomputer 118. The sell request message may specify an amount ofcryptocurrency (e.g., the cryptocurrency amount calculated at 1124 thatis equivalent to the transaction amount of the authorization requestmessage). In some examples, the sell request message may indicate anacceptable fluctuation amount (e.g., 2% up or down) that defines anacceptable price range for the sale. Upon receipt, the exchange computer118 may determine if there are one or more buy requests within theexchange that match the sell request message parameters. That is, theexchange computer 118 may determine if there are the buyers within theexchange that are willing to purchase at least some portion of thecryptocurrency amount indicated in the sell request message for theprice/price range indicated in the sell request message. If there areone or more users that may purchase a total amount corresponding to thecryptocurrency amount indicated in the sell request, the exchangecomputer 118 may facilitate one or more transactions within the exchangeto transfer fiat currency of the buyer(s) to the exchange account of theIssuer and the cryptocurrency of the Issuer to the exchange account ofthe buyer(s).

At 1130, a component (e.g., the exchange module 118F) of the exchangecomputer 118 may transmit a sell response message to the processingnetwork computer 116. Upon receipt, or at another suitable time, acomponent (e.g., the ledger management module 116F) of the processingnetwork computer 116 may log the information contained in the sellresponse message within a ledger (e.g., the ledger 600 of FIG. 6). Acomponent (e.g., the exchange module 116H) of the processing networkcomputer 116 may forward the sell response message to the authorizingentity computer 120 at 1132. If the sale was successful (as indicated inthe sell request message), a component (e.g., the exchange module 120H)of the authorizing entity computer 120 may transmit a request to thewallet server computer 106 to deduct an appropriate amount ofcryptocurrency from the user's cryptocurrency account. For example, acomponent (e.g., the management module 106E) of the wallet servercomputer 106 may cause equivalent amount of cryptocurrency calculated at1124 to be deducted from the user's cryptocurrency account as well as,in some cases, a transaction fee (e.g., 2% of the transaction amount, 4%of the transaction amount, a flat fee, etc.).

At 1132, a component (e.g., the transaction module 120G) of theauthorizing entity computer 120 may authorize or reject the transactionbased on the sell response message received at 1130. For example, if thesell response message indicates the sale was successful, the authorizingentity computer 120 may send an authorization response message thatindicates the transaction initiated at 1102 has been authorized. If thesale was unsuccessful, the authorizing entity computer 120 may send anauthorization response message that indicates that the transaction wasdenied.

At 1134, the authorizing entity computer 120 may send an authorizationresponse indicating whether or not the transaction was authorized to theprocessing network computer 116.

At 1136, the processing network computer 116 may forward theauthorization response message to the transport computer 114. At 1138,the transport computer 114 may forward the authorization responsemessage to the resource provider computer 112.

At 1140, the resource provider computer 112 may release the purchasedgoods and/or services to the user 103 based on the authorizationresponse message.

FIG. 12 shows a flow diagram illustrating a method 1200 forcryptocurrency settlement according to an embodiment of the invention.The method 1200 may begin at 1202, where a component (e.g., thesettlement module 116G) of processing network computer 116 may cause thecryptocurrency transactions occurring within a settlement time window tobe aggregate to determine aggregated transaction amounts. Theaggregation may utilize a ledger (e.g., the ledger 600 of FIG. 6). In atleast one example, the processing network computer 116 may aggregate allcryptocurrency transactions for associated with individual Issuers.Referring to the ledger 600 of FIG. 6, the processing network computer116 may determine that, based on the transactions included in the ledger600, that the Issue “DDS” has sold 3.61 Bitcoins utilizing the exchange“Coin BB.” Additionally, the processing network computer 116 maydetermine, based on the ledger 600, that the exchange “Coin BB” owes theIssuer “DDS” $7000 U.S. Dollars for the transactions within thesettlement time window.

The method may proceed to 1204, where a component (e.g., the settlementmodule 116G) of the processing network computer 116 may send informationindicating the amount of Bitcoin sold within the settlement time windowto the authorizing entity computer 120. Upon receipt of the information,or at another suitable time, a component (e.g., the settlement module120I) of the authorizing entity may perform one or more operations toconduct a transfer on a cryptocurrency network.

For example, the authorizing entity computer 120 (via the settlementmodule 120I) may be configured to send a transaction request to thecryptocurrency network computer 108 at 1206. The transaction request mayindicate that the authorizing entity computer 120 requests that 3.61Bitcoins are transferred from the Issuer associated with the authorizingentity computer 120 to the Exchange associated with the exchangecomputer 118.

The method may proceed to 1208, where the cryptocurrency networkcomputer 108 may perform one or more operations to transfer 3.61 Bitcoinfrom the Issuer to the exchange. By way of example, the cryptocurrencynetwork computer 1210 may record in a blockchain ledger associated withthe cryptocurrency network in which the cryptocurrency network computer108 participates, a transfer of the 3.61 from the Issuer to theexchange. The exchange computer 118 may be notified of the transfer and,at any suitable time, the exchange computer 118 may transfer the 3.61Bitcoins to the Issuer's exchange account. Thus, the Bitcoins that werepreviously sold to conduct the cryptocurrency transaction of FIG. 11 maybe replaced and the Issuer's account replenished for futurecryptocurrency transactions.

The method may proceed to 1210, where the processing network computer116 may transmit a settlement message to the exchange computer 118. Thesettlement message may indicate a settlement amount (e.g., $7000) basedon the aggregation performed at 1202.

The method may proceed to 1212, where a component (e.g., the settlementmodule 118G) of the exchange computer 118 may perform one or moreoperations to conduct a conventional transaction to transfer thesettlement amount ($7000) to the Issuer.

Embodiments of the invention have a number of advantages. For example,utilizing the techniques discussed above, the user 103 can conducttransactions for goods and services in near real-time. If the user 103were to attempt to exchange cryptocurrency with a merchant utilizingconventional techniques for transferring cryptocurrency, both the userand the merchant might have to wait a significant period of time (e.g.,30 minutes) before the transaction could be confirmed by thecryptocurrency network. By requiring the user to essential fund acryptocurrency account in advance, and by utilizing a cryptocurrencyaccount of the Issuer within an exchange, the process described abovecan be conducted in near real time. Making the techniques describedherein for performing transaction utilizing cryptocurrency much morepractical than conventional systems as the overall latency experiencedduring the performance of the transactions discussed herein issignificantly shorter.

Additionally, to transfer cryptocurrency for goods and services usingconventional techniques would require the user and the merchant to havea pre-existing cryptocurrency account on the cryptocurrency network.However, by utilizing the techniques described here, the merchant is notrequired to have any interaction or knowledge of the cryptocurrencynetwork. To the merchant and the acquirer, the processes described hereare no different, from these entity's points of view, than a traditionalauthorization process associated with a transaction involving fiatcurrency. The utilizing of the cryptocurrency as payment is managedbetween the Issuer, processing network computer, and the exchange anymay be completely transparent to the user, the merchant, and/or theacquirer.

Any of the computing devices described herein may be an example of acomputer system that may be used to implement any of the entities orcomponents described above. The subsystems of such a computer system maybe are interconnected via a system bus. Additional subsystems include aprinter, keyboard, storage device, and monitor, which is coupled todisplay adapter. Peripherals and input/output (I/O) devices, whichcouple to I/O controller, can be connected to the computer system by anynumber of means known in the art, such as a serial port. For example,I/O port or external interface can be used to connect the computerapparatus to a wide area network such as the Internet, a mouse inputdevice, or a scanner. The interconnection via system bus may allow thecentral processor to communicate with each subsystem and to control theexecution of instructions from system memory or the storage device, aswell as the exchange of information between subsystems. The systemmemory and/or the storage device may embody a computer-readable medium.

As described, the inventive service may involve implementing one or morefunctions, processes, operations or method steps. In some embodiments,the functions, processes, operations or method steps may be implementedas a result of the execution of a set of instructions or software codeby a suitably-programmed computing device, microprocessor, dataprocessor, or the like. The set of instructions or software code may bestored in a memory or other form of data storage element which isaccessed by the computing device, microprocessor, etc. In otherembodiments, the functions, processes, operations or method steps may beimplemented by firmware or a dedicated processor, integrated circuit,etc.

Any of the software components or functions described in thisapplication may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example,Java, C++ or Perl using, for example, conventional or object-orientedtechniques. The software code may be stored as a series of instructions,or commands on a computer-readable medium, such as a random accessmemory (RAM), a read-only memory (ROM), a magnetic medium such as ahard-drive or a floppy disk, or an optical medium such as a CD-ROM. Anysuch computer-readable medium may reside on or within a singlecomputational apparatus, and may be present on or within differentcomputational apparatuses within a system or network.

While certain exemplary embodiments have been described in detail andshown in the accompanying drawings, it is to be understood that suchembodiments are merely illustrative of and not intended to berestrictive of the broad invention, and that this invention is not to belimited to the specific arrangements and constructions shown anddescribed, since various other modifications may occur to those withordinary skill in the art.

As used herein, the use of “a”, “an” or “the” is intended to mean “atleast one”, unless specifically indicated to the contrary.

1.-14. (canceled)
 15. A method, comprising: receiving, by an processingnetwork computer, an authorization request message associated with atransaction having a fiat currency amount; transmitting, by theprocessing network computer, the authorization request message to anauthorizing entity computer; obtaining, by the processing networkcomputer, an exchange rate associated with a cryptocurrency; receiving,by the processing network computer, a sell request message indicating asell request for a cryptocurrency amount, the cryptocurrency amountbeing based at least in part on the fiat currency amount and theexchange rate associated with the cryptocurrency; transmitting, by theprocessing network computer, the sell request message to an exchangecomputer; receiving, by the processing network computer, a sell responsemessage indicating that the sell request was successful; maintaining, bythe processing network computer, information related to the sellresponse message in an electronic ledger; and transmitting, by theprocessing network computer, the sell response message to theauthorizing entity computer, wherein transmitting the sell responsemessage causes the authorizing entity computer to transmit anauthorization response message indicating that the transaction isauthorized.
 16. The method of claim 15, further comprising: executing,by the processing network computer, a settlement process forfacilitating settlement between the exchange computer and theauthorizing entity computer.
 17. The method of claim 16, wherein thesettlement process comprises: determining aggregated transaction amountsfor transactions occurring within a settlement time window between theauthorizing entity computer and the exchange computer, whereindetermining the aggregated transaction amounts utilizes the electronicledger maintained by the processing network computer.
 18. The method ofclaim 17, wherein the settlement process further comprises:transmitting, by the processing network computer to the authorizingentity computer, a first settlement message indicating a total amount ofcryptocurrency sold by an authorizing entity associated with theauthorizing entity computer, the total amount of cryptocurrency beingdetermined based on the aggregated transaction amounts; andtransmitting, by the processing network computer to the exchangecomputer, a second settlement message indicating a total fiat currencyamount held by the exchange computer that is to be transferred to theauthorizing entity associated with the authorizing entity computer, thetotal fiat currency amount being determined based on the aggregatedtransaction amounts.
 19. The method of claim 18, wherein receipt of thefirst settlement message causes the authorizing entity computer toperform one or more operations to conduct a transfer an amount ofcryptocurrency to an exchange associated with the exchange computer, thetransfer being conducted utilizing a cryptocurrency network computerassociated with the cryptocurrency.
 20. The method of claim 18, whereinreceipt of the second settlement message causes the exchange computer toperform one or more operations to conduct a transfer of the total fiatcurrency amount from an exchange associated with the exchange computerto the authorizing entity associated with the authorizing entitycomputer.
 21. The method of claim 15, wherein the electronic ledger is ablockchain ledger.
 22. The method of claim 15, wherein the authorizationresponse message is transmitted to a resource provider computer.
 23. Themethod of claim 15, wherein the authorization request message is from aresource provider computer via a transport computer.
 24. The method ofclaim 15, wherein the authorization request message comprises an accountnumber.
 25. A processing network computer comprising: a processor; and anon-transitory computer readable medium, the non-transitory computerreadable medium comprising code, executable by the processor toimplement a method comprising: receiving, by the processing networkcomputer, an authorization request message associated with a transactionhaving a fiat currency amount; transmitting, by the processing networkcomputer, the authorization request message to an authorizing entitycomputer; obtaining, by the processing network computer, an exchangerate associated with a cryptocurrency; receiving, by the processingnetwork computer, a sell request message indicating a sell request for acryptocurrency amount, the cryptocurrency amount being based at least inpart on the fiat currency amount and the exchange rate associated withthe cryptocurrency; transmitting, by the processing network computer,the sell request message to an exchange computer; receiving, by theprocessing network computer, a sell response message indicating that thesell request was successful; maintaining, by the processing networkcomputer, information related to the sell response message in anelectronic ledger; and transmitting, by the processing network computer,the sell response message to the authorizing entity computer, whereintransmitting the sell response message causes the authorizing entitycomputer to transmit an authorization response message indicating thatthe transaction is authorized.
 26. The processing network computer ofclaim 25, wherein the method comprises: executing, by the processingnetwork computer, a settlement process for facilitating settlementbetween the exchange computer and the authorizing entity computer. 27.The processing network computer of claim 26, wherein the settlementprocess comprises: determining aggregated transaction amounts fortransactions occurring within a settlement time window between theauthorizing entity computer and the exchange computer, whereindetermining the aggregated transaction amounts utilizes the electronicledger maintained by the processing network computer.
 28. The processingnetwork computer of claim 27, wherein the settlement process furthercomprises: transmitting, by the processing network computer to theauthorizing entity computer, a first settlement message indicating atotal amount of cryptocurrency sold by an authorizing entity associatedwith the authorizing entity computer, the total amount of cryptocurrencybeing determined based on the aggregated transaction amounts; andtransmitting, by the processing network computer to the exchangecomputer, a second settlement message indicating a total fiat currencyamount held by the exchange computer that is to be transferred to theauthorizing entity associated with the authorizing entity computer, thetotal fiat currency amount being determined based on the aggregatedtransaction amounts.
 29. The processing network computer of claim 28,wherein receipt of the first settlement message causes the authorizingentity computer to perform one or more operations to conduct a transferan amount of cryptocurrency to an exchange associated with the exchangecomputer, the transfer being conducted utilizing a cryptocurrencynetwork computer associated with the cryptocurrency.
 30. The processingnetwork computer of claim 28, wherein receipt of the second settlementmessage causes the exchange computer to perform one or more operationsto conduct a transfer of the total fiat currency amount from an exchangeassociated with the exchange computer to the authorizing entityassociated with the authorizing entity computer.
 31. The processingnetwork computer of claim 25, wherein the electronic ledger is ablockchain ledger.
 32. The processing network computer of claim 25,wherein the authorization response message is transmitted to a resourceprovider computer.
 33. The processing network computer of claim 25,wherein the authorization request message is from a resource providercomputer via a transport computer.
 34. The processing network computerof claim 25, wherein the authorization request message comprises anaccount number.